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Lean construction – an effective management system in the construction

industry
To cite this article: E N Parfenova et al 2020 IOP Conf. Ser.: Mater. Sci. Eng. 945 012012

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BUILDINTECH BIT 2020. INNOVATIONS AND TECHNOLOGIES IN CONSTRUCTION IOP Publishing
IOP Conf. Series: Materials Science and Engineering 945 (2020) 012012 doi:10.1088/1757-899X/945/1/012012

Lean construction – an effective management system in the

construction industry

E N Parfenova1*, Zh N Avilova 2 and A N Ganzha3

1
Department of Economics and Management, Belgorod State University, Pobedy St.,
85, Belgorod, 308015, Russia
2
Department of Economics and management, Belgorod State Technological
University named after V.G. Shukhov, Kostyukov St., 46, Belgorod, 308012, Russia
3
Department of Heat Engineering and Energy Efficient Technologies, National
Technical University «Kharkiv Polytechnic Institute», Kyrpychova St., 2, Kharkiv,
61002, Ukraine

E-mail: parfenova@bsu.edu.ru

Abstract. The paper discusses the possibilities and prospects of using methods and tools of
lean construction to improve the arragement of the construction business in the Belgorod
region. Lean construction is considered as a system of innovative methods of process
management in construction. The use of this system is an effective tool for optimizing the
results of work: the time and cost of work is reduced by constantly improving the quality of
the final product. Exploring the methodology and tools of lean construction, we can identify
four main areas of use: employee engagement, cost reduction, optimization of construction
processes, and loss prevention. The paper presents the results of using the concept of lean
construction in foreign countries, as well as methods and tools aimed at involving employees
in lean production, reducing costs and preventing losses, optimization, automation and
informatization of the production process at the level of strategic and operational
management. The specificity of the choice of tools and methods of work performed at all
levels of management for the construction industry is determined. The application of the
concept of lean construction is justified, which allows organizations to increase their
competitiveness and business efficiency.

1. Introduction
In modern economic conditions, the basis for the success of a construction company is a high-level
organization. The main quality is to know the responsibility of each employee in the value chain of the
final product. The concept of lean construction provides these opportunities. It depends on each
construction company how to use them, and currently the organization activities in the process of
modern management will be effective if the management processes are modernized to improve the
construction process and overall economic development in order to increase the scale and technical
capabilities of the organization.
Currently, the country’s construction companies face the task of optimizing organizational methods
of construction management in accordance with the best world practices [1, 10, 11]. The stages of
development for improving the organization differ due to significant gaps between them, so there is an
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BUILDINTECH BIT 2020. INNOVATIONS AND TECHNOLOGIES IN CONSTRUCTION IOP Publishing
IOP Conf. Series: Materials Science and Engineering 945 (2020) 012012 doi:10.1088/1757-899X/945/1/012012

increasing need to implement modern management methods using the latest tools. One of these
concepts is lean construction as a system of innovative methods for managing processes in
construction. The use of this system is an effective tool for optimizing the results of work: the time
and cost of work is reduced by constantly improving quality of the final product.

2.Materials and methods

The methodological basis of the research was a systematic approach to the research object, the
principle of specificity, principle of development and the principle of objectivity. The study used
methods of situational, structural and functional, economic and statistical, comparative analysis,
tabular and graphical interpretation of empirical and factual information. The subject of the research is
the concept, methods, tools and practice of using lean production in the construction industry.
The study of the concept of lean production and justification of the possibility and feasibility of its
application in the construction industry was carried out on the basis of the Russian standard GOST R
56020-2014 “Lean production. Basic provisions and dictionary”.
The application of lean production philosophy, values, principles and tools is based on presenting
the business as a stream of value creation for the consumer, flexibility, identifying and reducing
losses, and continuous improvement of all activities at all levels of the organization, involvement and
development of personnel in order to increase customer satisfaction and other stakeholders.

3. Results and discussions

The main goal of lean construction is continuous improvement. The concept of lean construction is
borrowed from the theory of lean production. At the same time, the construction industry has adapted
a number of lean methods to reduce losses and increase profits. The lean manufacturing system itself
is not just a technology; it is a whole management philosophy that focuses all employees on
development and achieving maximum results [2].
The practice of lean production includes many methods and tools for managing manufacturing. At
the same time, 27% of the total number of employees involved in this process. This fact indicates that
the system of lean production pays considerable attention to the formation of a common corporate
goal, the creation of a lean culture at the enterprise (table 1).

Table 1. Methods and tools for involving employees in lean production.

Tools Function
and
methods

5S A tool that allows arranging the workplace of an employee efficiently, both

linear and administrative

TQM A method designed to improve the quality of organizational and managerial

processes

Gemba A tool aimed at involving administration in the production process

Hoshin A tool that allows establishing communication between managers and ordinary
Kanri employees quickly

Kaizen A tool designed to combine employees’ efforts to minimize costs

In addition, loss prevention is an important area in lean production. This toolkit account for a large
share of tools (33%), as the main task of lean production is to optimize manufacturing processes in
order to reduce costs and prevent losses (table 2).

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BUILDINTECH BIT 2020. INNOVATIONS AND TECHNOLOGIES IN CONSTRUCTION IOP Publishing
IOP Conf. Series: Materials Science and Engineering 945 (2020) 012012 doi:10.1088/1757-899X/945/1/012012

Using lean production tools and methods, you can imagine the process as a value stream,
identifying inefficient operations that should be excluded from the process, as the customer does not
want to pay for them [3, 9].
To do this, they map the value stream and use loss analysis to determine the processes that need to
be removed from the stream. Future enhanced flows should be taken into account when considering
the question of the elimination or reduction of losses at the map of future flows.

Table 2. Methods and tools aimed at reducing costs and preventing losses.
Tools and Function
methods
«Just-in-time» A method that allows fulfilling orders “just in time”, using raw material
PDСA stocks and financial flows rationally
A method that allows solving problems and making changes using a simple
algorithm of actions
OEE A method for detecting losses from improper use of machines and
equipment
SMART A tool that allows setting goals correctly, preventing production losses
Heijunka A tool that allows planning the inventory, bringing the frozen assets to the
minimum
Continuous A tool that allows building the production process optimally, preventing
flow downtime in the movement of material flows in it
Poka-Yoke A tool aimed at protecting against errors leads to minimizing costs
Bottleneck A tool for identifying production bottlenecks
analysis
Muda A tool that allows determining losses that lead to an improvement in the
quality of employees’ work

The remaining tools and methods of lean production (40%) are aimed at optimizing the production
process, increasing productivity, automation and informatization in the company (table 3).

Table 3. Methods and tools of lean production for optimization, automatization and
informatization of the production process.
Tools and Function
methods
Visual A tool for collecting information about all operations and processes
management
Standardize A tool designed to standardize all production operations and processes
work
Jidoka A method of partial automation of machines and equipment that allows to
identify problems and start solving them at the detection stage
SMED Method for quick changeovers of machines and equipment, moving from
their stop to the problem solving of equipment in operation
ISO Global quality standards
TPM A method that allows extending the life of machines and equipment by
informing all employees of the production process about the rules of
equipment maintenance
Kanban A tool that allows arranging production on the “just in time” principle
KPI A productivity indicator tool that allows assessing risks and achieving
strategic goals in a timely manner
VSM A tool that allows to identify processes that create and do not create value

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BUILDINTECH BIT 2020. INNOVATIONS AND TECHNOLOGIES IN CONSTRUCTION IOP Publishing
IOP Conf. Series: Materials Science and Engineering 945 (2020) 012012 doi:10.1088/1757-899X/945/1/012012

visually
TFM A flow management method that relies on planning and managing operations
and supply chains
Takt time A tool that allows planning specific performance for different departments
depending on orders

For the construction industry, to improve the quality of work, the choice of tools and methods is
determined by the specifics of the work performed, which facilitate its implementation at all levels

Lean construction tools and techniques

Operational Strategic
Aimed at improving individual Aimed at improving the flow of
processes. values throughout the construction
Engineering responsibility area at the process. Area of responsibility –
construction site company management team

Figure 1. Tools and methods of lean construction.

At the level of operational management, effective methods and tools for lean construction will be:
5S, standardization, mapping, submission of optimization proposals, and “pull” planning. At the level
of strategic management, the most effective methods and tools are: information modeling, just-in-time
deliveries, TQM, and a histogram of the value stream. The main activities in lean construction are:
establishing the value of each specific product; identifying the value stream; support for the
functioning of the value stream; “pulling” the necessary product by the consumer; continuous
improvement. The effectiveness of this practice has been repeatedly proven in a number of countries
of the world’s leading economies as a real tool for modernization, both for the construction process
and for the company’s management as a whole (table 4).

Table 4. Results of using the concept of lean construction in foreign countries.

Country Main directions of using the Methods and tools of The result of using the
concept of lean production lean construction concept of lean production

Israel cost reduction, Just-in-time, Kaizen, A systematic and

Kanban, 5S system, integrated approach to
employee engagement visual management, reducing costs and
standardize work, developing lean
Austria TQM, TPM production, working with
staff to create a “lean”
culture

Belgium

USA process optimization Kaizen, Pull system, Eliminating waste

visual management2, throughout the value chain
standardize work and
cost reduction safety, LEED
loss prevention

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BUILDINTECH BIT 2020. INNOVATIONS AND TECHNOLOGIES IN CONSTRUCTION IOP Publishing
IOP Conf. Series: Materials Science and Engineering 945 (2020) 012012 doi:10.1088/1757-899X/945/1/012012

China process optimization Kaizen, Kanban11, A comprehensive approach

Just-in-time, 5S system, using proprietary methods
visual management, to reduce the time of
cost reduction standardize work, equipment changeover.
TPM, TQM, SMED
employee engagement

Great process optimization Kaizen, 5S system, supply chain management,

Britain Jidoka, SMED creating long-term
relationships based on
cost reduction increasing value while
reducing core costs
SAR loss prevention

Italy process optimization Just-in-time, TPM, ISO, Focus on product quality,

Kaizen, standardize process standardization,
work and safety and environmental care

Finland cost reduction Kaizen, Just−in−time, Emphasis on the choice of

TQM, ISO suppliers and the quality of
process optimization raw materials, rhythmic
work, speed of customer
service

To date, some Russian construction companies have already applied the concept of lean
construction [5]. However, many companies were not able to build the right work on the
implementation of methods and tools of the concept of lean construction, so in the end they had to
freeze their implementation. An analysis of the practice of Russian enterprises that initiated the
introduction of the concept of lean construction, but did not implement it, shows that many of them
make the same mistakes [8].
Firstly, thoughtless implementation of lean construction tools and methods leads to the fact that
huge efforts are spent on eliminating all problems. Often, some of the tools can be implemented at a
later stage, or they may not be needed at all.
Secondly, employees refuse to learn the principles of lean construction. An untrained person who
works for a long time in one company often does not see any problems. However, this does not mean
that there are no problems, so the process of implementing the concept of lean construction is delayed.
Thirdly, the implementation of the lean construction process is delegated to a group of employees.
At the same time, the rest of the team does not participate in changes and actively opposes the
introduction of innovations. It is necessary to involve all staff, actively demonstrating the benefits of
changes – reducing labor costs and eliminating useless work.
Fourthly, management often neglects material incentives for participating in the introduction of
innovations in the enterprise. Today, the reality is that without an understanding of personal gain, staff
will not actively participate in changes. Employees should clearly know how they will be able to earn
extra money, and this incentive is still the strongest.

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BUILDINTECH BIT 2020. INNOVATIONS AND TECHNOLOGIES IN CONSTRUCTION IOP Publishing
IOP Conf. Series: Materials Science and Engineering 945 (2020) 012012 doi:10.1088/1757-899X/945/1/012012

Figure 2. Algorithm for implementing the concept of lean construction in construction companies.

Fifthly, management expects quick results from implementing the concept of lean construction. It
is patience and consistency that is the secret to the success of change.
Sixthly, it is often not correct to involve consultants in the implementation of the concept of lean
construction. It is necessary to avoid theorists, and to engage practitioners.
Seventhly, they shift the responsibility to the consultants. The most professional third-party expert
will not do their job for the management and employees. It is necessary to have a personal interest and
desire of all personnel to accept and then implement new technologies in construction.
Eighthly, there is often the optimization of operations and processes, which should not be. This is
one of the most frequent and dangerous mistakes. Instead of wasting time and effort on optimizing
useless processes, they should be eliminated.
Ninthly, employees are often afraid of optimizing the number of employees. Increasing efficiency
and reducing costs will logically lead to a review of the staff number, but often enterprises do not go to
the reduction, so all efforts to implement the concept of lean construction are slowed down [6].
We must admit that there are some companies that have introduced the concept of lean construction
and improved their skills in organizing construction. The result of this work became the annual
increase in productivity, reduced production cycle, increase the turnover of funds, and increase the
level of customer satisfaction, development of personnel motivation system [4]. To ensure success in
the implementation of the improvement program, an algorithm for implementing the concept of lean
construction in modern construction enterprises is proposed (figure 2).

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BUILDINTECH BIT 2020. INNOVATIONS AND TECHNOLOGIES IN CONSTRUCTION IOP Publishing
IOP Conf. Series: Materials Science and Engineering 945 (2020) 012012 doi:10.1088/1757-899X/945/1/012012

It should be noted that all of the above stages are designed for a continuous process, as training
personnel in the principles of lean construction is the basis for identifying and solving problems to
optimize construction processes [7].

4. Summary
Implementing the concept of lean construction takes a long time, and many problems arise. At the
same time, the use of this concept has significant material advantages and benefits over competitors.
To eliminate the identified losses, as well as reduce costs, they need to use the created value stream
algorithm. Thus, the proposed algorithm is effective, as the integrated use of the optimal set of
methods and tools of the concept of lean construction, taking into account their logical and temporal
ordering, will lead to a gradual improvement of management and construction processes and will
become a key way for the company to survive in modern market conditions [7, 10, 12].

5. References
[1] Chernykh E A 2009 Operational planning and construction quality: domestic and foreign
experience. Quality management 4 270–279
[2] Gorelik P I 2014 Lean construction as an innovative method of construction management
Construction of unique buildings and structures 12(27) 4048
[3] Chetaeva E A 2018 Foreign and domestic practice of using the lean production system Vector of
economy 1 (19) 55-60
[4] Isakov I V 2019 Current state and features of production application in Russia and abroad. In
the collection: Collection of selected articles on the materials of scientific conferences of the
SRI “National Development” 256-264
[5] Maysky R A, Ismagilova V S, Ismagilova A R 2016 Modern problems of development of the
world experience of “lean production” in Russia Bulletin of Economics and Management
3(4) 36-43
[6] Popova E S 2016 Lean construction methodology as an innovative approach to managing the
construction industry Master's Journal 1 141-146
[7] Parfenova E N Avilova Zh N 2018 Need for portfolio project management in construction
Bulletin of BSTU named after V.G. Shukhov 1 106-110
[8] Doroshenko Yu A Klimashevskaya A A 2017 Analysis of the scientific and technical potential
of enterprises in the construction materials industry in the context of assessing the need for
technological modernization in the industry Bulletin of BSTU named after V.G. Shukhov 1
214-218
[9] Doroshenko Y A Malykhina I O Somina I V 2018 Problems and prospects of scaling of high-
tech-business as an innovativeinvestment driver of economic systems development
Espacios 39(47) 23
[10] Doroshenko Y A Minaeva L A Avilova Z N Somina I V Leonova O V 2015 Socio-economic
aspects of development of small innovative business in Russia Journal of Applied
Engineering Science 13(4) 293-298
[11] Subbotin O S 2019 Building materials and technologies of modern housing: architectural and
ecological aspects Construction Materials and Products 2(4) 84 – 88
[12] Manzhilevskaya S E 2019 Organizational and economic problems of ecological safety in
construction Construction Materials and Products 2(4) 73 –78

Acknowledgements
This work was realized in the framework of the Program of flagship university development on the
base of the Belgorod State Technological University named after V G Shukhov, using equipment of
High Technology Center at BSTU named after V G Shukhov.